Data Centers Drive Growth for Fluence and Credo
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Should l Buy CRDO?
Source: Fool
- Fluence Growth Potential: Fluence Energy's battery modules provide stable power for data centers, with projected sales growth of 57% over the next two years despite flat revenues, indicating strong market demand and potential order opportunities.
- Data Center Project Development: Fluence is currently developing 36 GWh of data center projects, and while these potential sales are not yet included in the official order backlog, they highlight the company's significant position in the rapidly growing AI data center market.
- Credo Technological Innovation: Credo Technology's high-performance networking tools achieve data flows of up to 0.8 Tbps through its Active Electrical Cables, significantly reducing power consumption and cooling requirements, catering to the urgent demand for efficiency in data centers.
- Significant Revenue Growth: Credo's preliminary report for Q3 2026 shows revenues nearing $406 million, tripling from $135 million in the same period last year, demonstrating strong performance in the data center market and reliance on large clients' investments.
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Analyst Views on CRDO
Wall Street analysts forecast CRDO stock price to rise
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 112.270
Low
170.00
Averages
221.82
High
260.00
Current: 112.270
Low
170.00
Averages
221.82
High
260.00
About CRDO
Credo Technology Group Holding Ltd is a Cayman Islands-based holding company. The Company delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides high-speed connectivity solutions that deliver improved power efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. Its connectivity solutions are optimized for optical and electrical Ethernet applications, including the emerging 100 gigabits per second (G), 200G, 400G, 800G and the emerging 1.6 terabits per second (T) port markets. Its products are based on its Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Its product families include integrated circuits (ICs) for the optical and line card markets, active electrical cables (AECs) and SerDes Chiplets. The Company’s intellectual property (IP) solutions consist primarily of SerDes IP licensing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Credo Technology Q3 Earnings Exceed Expectations
- Strong Earnings Performance: Credo Technology reported a Q3 non-GAAP EPS of $1.07, beating expectations by $0.13, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $407.01 million in Q3, marking a 201.5% year-over-year increase and surpassing market expectations by $19.39 million, indicating a substantial rise in market demand and product sales.
- Optimistic Future Outlook: For Q4 of fiscal 2026, revenue is projected to be between $425 million and $435 million, exceeding the consensus estimate of $410.97 million, showcasing the company's confidence in future growth.
- Effective Cost Control: GAAP gross margin is expected to range from 63.9% to 65.9%, while non-GAAP gross margin is anticipated to be between 64.0% and 66.0%, indicating the company's ability to maintain profitability while effectively managing operating costs.
See More
Credo Technology Group to Report Q3 Earnings on March 2
- Earnings Report Announcement: Credo Technology Group is set to report its Q3 earnings on March 2, with analysts projecting an EPS of 94 cents and revenue of $387.62 million, indicating a stable performance in the market.
- Market Expectation Analysis: Despite the anticipated EPS and revenue suggesting growth potential, the stock fell by 1.9%, which may indicate that investors are cautious about the upcoming earnings report, fearing that results may not meet expectations.
- Profitability Outlook: Analysts maintain an optimistic view on Credo's profitability, expecting an EPS of 94 cents, suggesting that the company's efforts in cost control and revenue growth may pay off, thereby boosting market confidence.
- Stock Price Volatility Impact: The 1.9% decline in stock price could affect investor sentiment, particularly ahead of the earnings report, as investors may reassess their strategies, leading to short-term market fluctuations.
See More
Credo Tech (CRDO) Q3 2026 Earnings Call Transcript
See More
Credo Technology Reports Strong Q3 Earnings, Stock Drops
- Earnings Beat: Credo Technology reported adjusted earnings of $1.07 per share for Q3, surpassing the consensus estimate of $0.95, indicating a robust profitability trend despite a subsequent stock price drop.
- Significant Revenue Growth: The company achieved quarterly revenue of $407.01 million, exceeding the Street estimate of $400.23 million, with over 50% sequential growth and 200% year-over-year growth, showcasing strong market performance.
- Optimistic Outlook: Credo anticipates Q4 revenue between $425 million and $435 million, above the analyst estimate of $422.61 million, reflecting confidence in continued growth.
- Stock Price Volatility: Despite strong earnings, Credo's stock fell 8.16% to $104.90 in extended trading on Monday, indicating market caution regarding the company's future performance.
See More
MongoDB Shares Plunge 23% on Disappointing Earnings Guidance
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- Asana's Disappointing Guidance: Asana's shares dropped over 1% despite beating fourth-quarter expectations, as the company forecasted first-quarter revenue between $202.5 million and $204.5 million, below the $204 million expected by analysts, and its full-year revenue guidance also slightly missed expectations, raising concerns about future growth.
- Plug Power's Strong Sales: Plug Power reported robust sales in its fourth quarter, leading to a more than 7% increase in shares, with revenue of $225 million exceeding the $218 million expected by analysts, and although it posted an adjusted loss of 6 cents per share, this was better than the anticipated 10 cents, indicating strengthened competitiveness in the hydrogen market.
- Dave's Optimistic Financial Outlook: Dave's shares surged 8% as the company projected adjusted EBITDA between $290 million and $305 million, significantly higher than the $252.7 million estimate from analysts, and its full-year revenue guidance of $690 million to $710 million far exceeded the $637.6 million forecast, showcasing its strong market performance and growth potential.
See More
Credo Technology Reports Strong Q3 Results, Shares Drop 12.5%
- Strong Earnings Beat: Credo Technology reported an adjusted earnings per share of $1.07 for the fiscal third quarter ending January 31, with revenue soaring 201.5% year-over-year to $407.01 million, yet shares fell 12.5%, indicating investors' higher expectations for future growth.
- Upward Revenue Guidance: The company anticipates revenue between $404 million and $408 million, exceeding its previous guidance of $335 million to $345 million, reflecting optimism about market demand, particularly in the expanding AI infrastructure sector.
- Margin and Expense Forecast: Credo expects adjusted gross margins to range from 64% to 66%, while adjusted operating expenses are projected between $76 million and $80 million, demonstrating the company's commitment to innovation and market share expansion while managing costs effectively.
- Positive Market Outlook: With ongoing growth in AECs and ICs, alongside the launch of new multi-billion dollar initiatives like ZeroFlap optics, ALCs, and OmniConnect, Credo's potential for expansion in the AI infrastructure market remains strong, despite short-term stock fluctuations, indicating a positive long-term growth outlook.
See More
Credo Technology Q3 Earnings Exceed Expectations
- Strong Earnings Performance: Credo Technology reported a Q3 non-GAAP EPS of $1.07, beating expectations by $0.13, which reflects the company's robust profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenue of $407.01 million in Q3, marking a 201.5% year-over-year increase and surpassing market expectations by $19.39 million, indicating a substantial rise in market demand and product sales.
- Optimistic Future Outlook: For Q4 of fiscal 2026, revenue is projected to be between $425 million and $435 million, exceeding the consensus estimate of $410.97 million, showcasing the company's confidence in future growth.
- Effective Cost Control: GAAP gross margin is expected to range from 63.9% to 65.9%, while non-GAAP gross margin is anticipated to be between 64.0% and 66.0%, indicating the company's ability to maintain profitability while effectively managing operating costs.
See More
Credo Technology Group to Report Q3 Earnings on March 2
- Earnings Report Announcement: Credo Technology Group is set to report its Q3 earnings on March 2, with analysts projecting an EPS of 94 cents and revenue of $387.62 million, indicating a stable performance in the market.
- Market Expectation Analysis: Despite the anticipated EPS and revenue suggesting growth potential, the stock fell by 1.9%, which may indicate that investors are cautious about the upcoming earnings report, fearing that results may not meet expectations.
- Profitability Outlook: Analysts maintain an optimistic view on Credo's profitability, expecting an EPS of 94 cents, suggesting that the company's efforts in cost control and revenue growth may pay off, thereby boosting market confidence.
- Stock Price Volatility Impact: The 1.9% decline in stock price could affect investor sentiment, particularly ahead of the earnings report, as investors may reassess their strategies, leading to short-term market fluctuations.
See More
Credo Tech (CRDO) Q3 2026 Earnings Call Transcript
See More
Credo Technology Reports Strong Q3 Earnings, Stock Drops
- Earnings Beat: Credo Technology reported adjusted earnings of $1.07 per share for Q3, surpassing the consensus estimate of $0.95, indicating a robust profitability trend despite a subsequent stock price drop.
- Significant Revenue Growth: The company achieved quarterly revenue of $407.01 million, exceeding the Street estimate of $400.23 million, with over 50% sequential growth and 200% year-over-year growth, showcasing strong market performance.
- Optimistic Outlook: Credo anticipates Q4 revenue between $425 million and $435 million, above the analyst estimate of $422.61 million, reflecting confidence in continued growth.
- Stock Price Volatility: Despite strong earnings, Credo's stock fell 8.16% to $104.90 in extended trading on Monday, indicating market caution regarding the company's future performance.
See More
MongoDB Shares Plunge 23% on Disappointing Earnings Guidance
- MongoDB Shares Plunge: MongoDB's stock fell 23% in after-hours trading as the company projected first-quarter adjusted earnings per share between $1.15 and $1.19, missing analysts' expectations of $1.21, while revenue guidance of $659 million to $664 million also fell short of the $662 million forecast, reflecting market disappointment in its performance outlook.
- Asana's Disappointing Guidance: Asana's shares dropped over 1% despite beating fourth-quarter expectations, as the company forecasted first-quarter revenue between $202.5 million and $204.5 million, below the $204 million expected by analysts, and its full-year revenue guidance also slightly missed expectations, raising concerns about future growth.
- Plug Power's Strong Sales: Plug Power reported robust sales in its fourth quarter, leading to a more than 7% increase in shares, with revenue of $225 million exceeding the $218 million expected by analysts, and although it posted an adjusted loss of 6 cents per share, this was better than the anticipated 10 cents, indicating strengthened competitiveness in the hydrogen market.
- Dave's Optimistic Financial Outlook: Dave's shares surged 8% as the company projected adjusted EBITDA between $290 million and $305 million, significantly higher than the $252.7 million estimate from analysts, and its full-year revenue guidance of $690 million to $710 million far exceeded the $637.6 million forecast, showcasing its strong market performance and growth potential.
See More
Credo Technology Reports Strong Q3 Results, Shares Drop 12.5%
- Strong Earnings Beat: Credo Technology reported an adjusted earnings per share of $1.07 for the fiscal third quarter ending January 31, with revenue soaring 201.5% year-over-year to $407.01 million, yet shares fell 12.5%, indicating investors' higher expectations for future growth.
- Upward Revenue Guidance: The company anticipates revenue between $404 million and $408 million, exceeding its previous guidance of $335 million to $345 million, reflecting optimism about market demand, particularly in the expanding AI infrastructure sector.
- Margin and Expense Forecast: Credo expects adjusted gross margins to range from 64% to 66%, while adjusted operating expenses are projected between $76 million and $80 million, demonstrating the company's commitment to innovation and market share expansion while managing costs effectively.
- Positive Market Outlook: With ongoing growth in AECs and ICs, alongside the launch of new multi-billion dollar initiatives like ZeroFlap optics, ALCs, and OmniConnect, Credo's potential for expansion in the AI infrastructure market remains strong, despite short-term stock fluctuations, indicating a positive long-term growth outlook.
See More
